LAWRENCE J. HOGAN, JR., Governor Ch. 392
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Chapter 392
(Senate Bill 458)
AN ACT concerning
Maryland Teachers and State Employees Supplemental Retirement Plans – Use
of Minority Business Enterprises
FOR the purpose of requiring the Board of Trustees of the Maryland Teachers and State
Employees Supplemental Retirement Plans to consider using minority business
enterprises for certain services; requiring the Board to use the Office of State
Procurement’s website and the State’s electronic procurement system to provide
notice to potential providers; requiring the Board, in consultation with the
Governor’s Office of Small, Minority, and Women Business Affairs, to identify
entities that have been certified as minority business enterprises under certain
circumstances; and generally relating to the use of minority business enterprises in
the Maryland Teachers and State Employees Supplemental Retirement Plans.
BY repealing and reenacting, with amendments,
Article – State Personnel and Pensions
Section 35–302
Annotated Code of Maryland
(2015 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – State Personnel and Pensions
35–302.
(a) Assets of the supplemental retirement plans may be deposited and invested
in accordance with the investment elections allowed under the supplemental retirement
plans as selected and determined by the Board in accordance with the statements of
investment policy adopted by the Board from time to time notwithstanding any other law
limiting the types of investments that may be made with State funds or imposing conditions
on the deposit of State funds.
(b) The Board shall make arrangements for the safe custody, domestic or global,
of investments with one or more duly qualified custodian banks or trust companies.
(c) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of the State
Finance and Procurement Article, Title 10 and Division II of the State Finance and
Procurement Article do not apply to the supplemental retirement plans for:
Ch. 392 2022 LAWS OF MARYLAND
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(1) services of managers to invest the assets deposited and invested in
investment options of the supplemental retirement plans in accordance with the
statements of investment policy adopted by the Board from time to time;
(2) expenditures to manage, maintain, and enhance the value of assets
deposited and invested in investment options of the supplemental retirement plans selected
in accordance with the statements of investment policy adopted by the Board from time to
time; and
(3) expenditures for the safe custody, domestic or global, of assets deposited
and invested in investment options of the supplemental retirement plans selected in
accordance with subsection (b) of this section.
(d) (1) [(i)] The Board shall CONSIDER AND attempt to use to the greatest
extent feasible minority business enterprises to provide [brokerage and investment
management] INVESTMENT ADVISOR AND FUND MANAGER services to the Board
consistent with minority business purchasing standards applicable to units of State
government under the State Finance and Procurement Article and consistent with the
fiduciary duties of the Board.
[(ii) For purposes of this subsection, brokerage and investment
management services shall include services relating to all allocated asset classes.]
(2) (i) To assist it in achieving the goal described under paragraph (1)
of this subsection, the Board shall undertake measures to remove any barriers that limit
full participation by minority business enterprises in [brokerage and investment
management] INVESTMENT ADVISOR A ND FUND MANAGER services opportunities
afforded under this title.
(ii) The measures undertaken by the Board shall include the use of
[a wide variety of media, including] the Maryland Teachers and State Employees
Supplemental Retirement Plans’ website AND, THE OFFICE OF STATE PROCUREMENT
WEBSITE, AND THE STATE’S ELECTRONIC PROCURE MENT SYSTEM , WHENEVER
REQUIRED, to provide notice to a broad and varied range of potential providers about the
[brokerage and investment management] INVESTMENT ADVISOR A ND FUND MANAGER
services opportunities afforded by the Maryland Teachers and State Employees
Supplemental Retirement Plans.
(3) In consultation with the Governor’s Office of Small, Minority, and
Women Business Affairs, the Board shall [develop guidelines to assist the Board in
identifying and evaluating] IDENTIFY ENTITIES TH AT HAVE BEEN CERTIFI ED BY THE
STATE DEPARTMENT OF TRANSPORTATION AS MIN ORITY BUSINESS ENTER PRISES
AS qualified minority business enterprises in order to help the Maryland Teachers and
State Employees Supplemental Retirement Plans achieve the objective for greater use of LAWRENCE J. HOGAN, JR., Governor Ch. 392
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minority business enterprises for [brokerage and investment management] INVESTMENT
ADVISOR AND FUND MAN AGER services.
(4) On or before September 1 each year, the Board shall submit a report to
the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to §
2–1257 of the State Government Article, the General Assembly on:
(i) the identity of the minority business enterprise [brokerage and
investment management] INVESTMENT ADVISOR A ND FUND MANAGER services firms
used by the Board in the immediately preceding fiscal year;
(ii) the percentage and dollar value of the assets that are under the
control of the Board that are under the investment control of minority business enterprise
[brokerage and investment management] INVESTMENT ADVISOR A ND FUND MANAGER
services firms for each allocated asset class; and
(iii) the measures the Board undertook in the immediately preceding
fiscal year in accordance with paragraph (2)(ii) of this subsection.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2022.
Approved by the Governor, May 16, 2022.